includes direct and indirect business income and extra expense losses. A dollar limit appears in the policy declarations for each category of property that is covered.

BOP Covered Causes of Losses

Unless modified by endorsement to provide named perils coverage, the property section of the ISO businessowners coverage form provides open perils coverage.

BOP Significant or Unusual Exclusions

Utility Services

Power Surges

Computers & Data

Fungus, Wet Rot, Dry Rot, Virus & Bacteria

Collapse

Product Errors

BOP Coverage Extensions

are called extensions because they apply only if the policy already covers the category of property—buildings or business personal property—that is being extended to provide a particular additional coverage. Each extension involves an additional amount of insurance rather than a sublimit.

Newly Acquired Property Extension

temporary coverage up to $250,000 per building under construction; up to $100,000 for personal property; expires 30 days after acquisition or start of construction.

A $2,500 limit is available to cover outdoor property, consisting of trees, shrubs, plants, detached signs, fences, and antennas. A sublimit applies to individual trees, shrubs, and plants. Covered perils for this extension are limited to fire, lightning, explosion, riot and civil commotion, and aircraft. Conspicuous by their absence are perils such as vandalism and windstorm, to which outdoor property can be especially susceptible.

Personal Effects Extension

$2,500 at each location; excludes loss by theft, tools, and equipment.

Value Papers & Records Extension

on location $10,000 limit; off location $5,000; excludes off site stored papers and records.

Accounts Receivable Extension

$10,000 per occurrence; $5,000 other locations; excludes falsification and errors.

Business Income & Extra Expense Coverage in BOP

no dollar limit

no coinsurance provision

12-month maximum

payroll 60-day limit

lasts up to 30 days after repairs are complete

72-hour deductible period of restoration applies

Business Income & Extra Expense Exclusions

Strikes, picketers, or protester.

Suspension or cancellation of a contract, lease, or license.

Inflation Guard Provision

automatically and continuously increases the building coverage limits by an 8% annual rate by 1/365 of the applicable dollar amount each day of the year.